Car battery makers to fight EU cartel charges at hearing next week, sources say (updated)

Exide Industries

29/05/2024 17:47

(Adds Kellen comment)
    By Foo Yun Chee
       BRUSSELS, May 29 (Reuters) - A group of car starter
battery makers will contest European Union accusations of
operating a cartel to fix battery prices at a closed hearing
next week, people with direct knowledge of the matter said on
Wednesday.
    The companies are Banner, Clarios, Exide, FIAMM Energy
Technology (FET) and its predecessor Elettra, and Rombat 
    Together with trade body Eurobat and its service provider
Kellen, which were also charged by the European Commission, the
companies will present their arguments at a week-long hearing in
Brussels, they said.
    Companies usually plead their case at such events before
senior Commission officials and their peers from national
competition agencies, rivals and customers. That could lead to
regulators narrowing their charges, although this is rare.
    The EU executive, which also acts as the EU competition
watchdog, accused the group last year of colluding to increase
the prices of automotive starter batteries sold to car producers
in Europe.
    It said this took place between 2004 and 2017, during which
the seven participants created, published and agreed to use new
indexes in their price negotiations with carmakers in the
so-called Eurobat Premium system.
    The Commission, Banner and FET declined to comment. 
    Kellen said it has submitted its defence to the Commission
rejecting the claims and allegations.
    "Our lawyers will defend Kellen at the hearing next week," a
spokesperson said.
    Clarios, Exide, Rombat and Eurobat did not immediately
respond to requests for comment.
    The companies, which make 12-volt lead batteries used to
start most combustion engine cars, risk fines as much as 10% of
their global turnover if found guilty of breaching EU antitrust
rules.

 (Reporting by Foo Yun Chee; Editing by Mark Potter)
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